Importance of Cost/Managment Accounting for Stakeholders...

The following essay explains the importance of cost accounting for stakeholders of Multinational Companies, particularly the shareholders the customers. Who are the stakeholders of an organization? according to (Freeman 1984) stakeholder is â€Å"any group or individual who can affect or is affected by the achievement of the firm’s objectives† going by this definition stakeholders of a company would include lenders, creditors, customers, shareholders, government, media, political groups, local charities etc. The main focus of this essay will be on shareholders and customers. A company cannot plan a strategy on to just focus on increasing shareholder value or just focus on customers, neither one leads to the other automatically.†¦show more content†¦Determining individual costs is very essential to the running of all kinds of businesses. The term allocation and apportionment of costs are sometimes used interchangeably in some countries but according to (CIMA) assigning of a cost to a single cost unit or cost centre is known as cost allocation and assigning of indirect cost or overheads to two or more units of costs is known as cost apportionment. Various methods of determining and allocating costs are used by businesses some of which are referred as traditional costing systems which include direct costing absorption costing. (Drury)’ traditional costing systems were developed in the early 1900s and are still in use businesses today.’ In direct costing method only direct costs are assigned to cost objects, supporters of direct costing argue that only direct costs can be traced accurately to a cost object and hence they provide a true assessment of the cost since indirect costs cannot be exclusively traced to a cost object therefore should not be assigned to a cost object. (Drury): Another traditional method used is known as absorption costing which takes in to account both direct indirect costs when assigning costs to cost objects, Supporters of absorption costing say that indirect costs should not be ignored because whenShow MoreRelatedBackground Inditex, One of the Worlds Largest Fashion Distributors, Has Eight Major Sales Formats - Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home Y Kiddys Class- with 3.147 Stores in 70100262 Words   |  402 Pageswould have finished this thing a lot sooner, but you fill my heart with laughter and my days with love and I am grateful for every moment. Beatrice Kogg Lund, January 2009 Executive summary Background and purpose of the thesis The issues that stakeholders today are bringing to the corporate agenda are diverse indeed, ranging from issues pertaining to environmental sustainability, human rights, workers’ health and safety, community welfare and the spread of HIV/AIDS. From a corporate perspectiveRead MoreStrategic Marketing Management337596 Words   |  1351 Pagesanalysis Competitive advantage and the value chain Conducting effective audits Summary 3 Segmental, productivity and ratio analysis 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 Learning objectives Introduction The clarification of cost categories Marketing cost analysis: aims and methods An illustration of segmental analysis An alternative approach to segmental analysis Customer profitability analysis Marketing experimentation The nature of productivity The use of ratios Analysing ratios andRead MoreA Comparison Between Advertising Agencies’ and Pr Agencies’ Internationalization Motives and Entry Modes - Eight Cases from Sweden20158 Words   |  81 Pagesbe small or medium-sized (Bjà ¶rkman and Kock 1997). According to the World Trade Organization, WTO, the global service sector contributed to more than two thirds of the world GDP in 2006. Furthermore, the service sector in the period 1990-2001 was accounting for more than half of the employment in most countries under WTO review (Measuring Trade in Services, 2006). The service globalization has b een driven by for example decreasing barriers to trade and the advancements of technology (Winstead and Patterson